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Last Updated : Oct 12, 2020 10:19 AM IST | Source: Moneycontrol.com

Nifty likely to move towards 12,200-12,400; keep an eye on global, domestic data: Experts

Developments around stimulus package both from the US and the Indian government would keep the sentiments positive. Next week India’s inflation data and industrial output would be watched out, says Siddhartha Khemka, Head - Retai l Research, Motilal Oswal Financial Services.

Sensex

In the last week, benchmark indices rallied more than 4 percent each supported by the positive domestic cues including the decent start of the earnings season, RBI's dovish stance and continued FIIs buying. Here are some expert views on what to expect this week:

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | For Nifty 12,200-12,300 is a potential target which the index is capable of achieving during the course of this month. 11,400 is a good support level.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | For Nifty 12,200-12,300 is a potential target which the index is capable of achieving during the course of this month. 11,400 is a good support level.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking | The base has shifted higher and the previous resistance area of 11700 – 11450 should now be treated as a strong support. On the flipside, we are very much close to the psychological mark of 12000. The moment it’s taken out, we may see a steady move towards 12200 – 12400 levels. Since, the banking index is back to 200-day SMA on the daily chart and the way it closed with complete gush in the space, a move beyond 24000 would provide strong support to the benchmark index. However, we would like to highlight that since the move is extremely swift, anytime we can see some intraday profit booking and hence, one needs to position accordingly and be very fussy in stock selection.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking | The base has shifted higher and the previous resistance area of 11700 – 11450 should now be treated as a strong support. On the flipside, we are very much close to the psychological mark of 12000. The moment it’s taken out, we may see a steady move towards 12200 – 12400 levels. Since, the banking index is back to 200-day SMA on the daily chart and the way it closed with complete gush in the space, a move beyond 24000 would provide strong support to the benchmark index. However, we would like to highlight that since the move is extremely swift, anytime we can see some intraday profit booking and hence, one needs to position accordingly and be very fussy in stock selection.

The benchmark index Sensex has recovered over 50 percent since March 23 lows. During this bounce-back rally, many penny stocks have also witnessed good gain. Moneycontrol analysis such low priced stocks which are trading either sniffing distance or have touched their 52-week high. We considered stocks that are currently trading below Rs 25 per share and eliminated companies with market below Rs 100 crore. Seven companies have made the cut and interestingly all these stocks have at least doubled in less than 6 months timeframe (From March 23, 2020). Data Source: ACE Equity.

S Hariharan, Head - Sales Trading, Emkay Global Financial Services | We can expect rotation of performance among sectors with sideways movement in broader indices and a consolidation of strong market performance. Defensive sectors can be expected to outperform in the near-term in such a scenario. Overall fund flow picture remains strong with DIIs & FIIs net buyers incrementally over the last few sessions.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities | Nifty on the weekly chart formed a long bull candle and the whole chart pattern now indicate a larger positive sequence of higher tops and bottoms. Hence, more upside could be in store in the near term to form a yet another higher top reversal at the new swing highs. The underlying trend of Nifty continues to be positive. The overall chart pattern signal more upside for the market in the near term. The upside targets to be watched for the coming week at 12250. Immediate support is placed at 11800.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities | Nifty on the weekly chart formed a long bull candle and the whole chart pattern now indicate a larger positive sequence of higher tops and bottoms. Hence, more upside could be in store in the near term to form a yet another higher top reversal at the new swing highs. The underlying trend of Nifty continues to be positive. The overall chart pattern signal more upside for the market in the near term. The upside targets to be watched for the coming week at 12250. Immediate support is placed at 11800.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Technically, Nifty formed a Bullish candle on daily and weekly scale and gave the highest daily close since 20th Feb 2020. A hold above 11800 can move Nifty towards 12000-12200 while support has moved higher at 11750. Investors would now track earnings season which is expected to show strong sequential recovery and watch out for management commentaries on demand for upcoming festive season. Developments around stimulus package both from the US and the Indian government would keep the sentiments positive. Next week India’s inflation data and industrial output would be watched out.

Siddhartha Khemka, Head - Retai l Research, Motilal Oswal Financial Services | Technically, Nifty formed a Bullish candle on daily and weekly scale and gave the highest daily close since 20th Feb 2020. A hold above 11800 can move Nifty towards 12000-12200 while support has moved higher at 11750. Investors would now track earnings season which is expected to show strong sequential recovery and watch out for management commentaries on demand for upcoming festive season. Developments around stimulus package both from the US and the Indian government would keep the sentiments positive. Next week India’s inflation data and industrial output would be watched out.

Markets - Image: Reuters

Ajit Mishra, VP - Research, Religare Broking | Next week, participants would be eyeing a list of important macroeconomic data viz. IIP, CPI and WPI inflation numbers. Besides, the update on US stimulus package and upcoming presidental debates will also be closely watched for cues. On the earnings front, the IT pack will remain in the limelight as three IT majors viz. Infosys, Wipro and HCL Technologies will announce their results next week. We feel the recent buoyancy in the banking, financials and IT majors could help the Nifty to retest 12,100 zone ahead. On the flip side, the 11,600-11,800 zone would act as a cushion in case of any profit-taking. We suggest sticking to the index majors citing the recent underperformance from the broader indices and expected rise in volatility.

First Published on Oct 12, 2020 08:47 am
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